Microsoft Reorganizes Platforms & Services Division; Kevin Johnson is Out

Microsoft has announced the reorganization of its Platforms and Services Division (PSD). The department will split into two new divisions: Windows/Windows Live and Online Services. Kevin Johnson, PSD President, is leaving Microsoft to head up Juniper Networks.

Senior vice presidents Steven Sinofsky, Jon DeVaan and Bill Veghte will report directly to CEO Steve Ballmer to lead Windows/Windows Live.

The Online Services Division will be headed by a newly created senior lead position for which an executive search will be conducted among external and internal candidates. For the duration, Senior Vice President Satya Nadella will continue to lead Microsoft’s search, MSN and ad platform engineering efforts.

In a memo to Microsoft employees, CEO Steve Ballmer addressed goals for many of Microsoft’s products and services. Here’s what he had to say about search:

Google: We continue to compete with Google on two fronts—in the enterprise, where we lead; and in search, where we trail. In search, our technology has come a long way in a very short time and it’s an area where we’ll continue to invest to be a market leader. Why? Because search is the key to unlocking the enormous market opportunities in advertising, and it is an area that is ripe for innovation. In the coming years, we’ll make progress against Google in search first by upping the ante in R&D through organic innovation and strategic acquisitions. Second, we will out-innovate Google in key areas—we’re already seeing this in our maps and news search. Third, we are going to reinvent the search category through user experience and business model innovation. We’ll introduce new approaches that move beyond a white page with 10 blue links to provide customers with a customized view of their world. This is a long-term battle for our company—and it’s one we’ll continue to fight with persistence and tenacity.

Yahoo: Related to Google and our search strategy are the discussions we had with Yahoo. I want to emphasize the point I’ve been making all along—Yahoo was a tactic, not a strategy. We want to accelerate our share of search queries and create a bigger pool of advertisers, and Yahoo would have helped us get there faster. But we will get there with or without Yahoo. We have the right people, we’ve made incredible progress in our technology, and we’ll continue to make smart investments that will enable us to build an industry-leading business.

What do you think about Microsoft’s reorganization? Will Kevin Johnson’s departure hurt them? Leave your thoughts in the comments.

Related Reading:
Microsoft Adds Record Number of Employees, Rules Out Acquisitions
Microsoft to Build Search Technology Center in Europe
Microsoft to Work on Live Search Reputation

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